White House Proposes Web Privacy Legislation

By

Jennifer Valentino-DeVries

February 24, 2012

The White House on Thursday called for legislation to create a "privacy bill of rights" that would give people greater control over their data—marking a turning point in online privacy efforts but likely setting off a long battle over how exactly the new policies will take shape.

The White House called for legislation to create a "privacy bill of rights" that would give people greater control over their data, Jennifer Valentino-DeVries reports on digits. Photo: AP.

The proposal, which was presented by the Commerce Department at an event in Washington, D.C., is the culmination of two years of study into privacy and consumer data online. It's "an important step toward fostering a culture of trust and respect of privacy," said Commerce Secretary John Bryson.

Mr. Bryson said the White House wants Congress to enact privacy legislation but is going to move forward with businesses and regulators to get the ball rolling even without congressional action. Several privacy bills have been introduced in recent months, but so far none has gotten close to becoming law.

The rights outlined by the Obama administration include allowing consumers to access and correct personal data and to have their data handled securely.

Businesses and consumer groups could use these guidelines to develop what the White House called "enforceable codes of conduct," or rules governing data collection and use. Businesses that agree to these rules would be bound to follow them or face scrutiny from regulators such as the Federal Trade Commission, which can investigate companies that mislead consumers about their practices.

Amid expressions of support for Internet users' privacy, there remains an undercurrent of tension between consumer and industry groups, which will be jockeying to make sure their interests are reflected in any rules or legislation. One of the most contentious issues is a "do not track" tool that would let people opt out of some types of data gathering online. The Digital Advertising Alliance, which represents more than 400 companies, announced its support for "do not track" as part of the White House event. But there is still disagreement over what "do not track" means.

Yahoo said it is most interested in having the online advertising industry continue its efforts to police itself, rather than getting regulators involved. "It is also critical that self-regulatory structure play a large and growing role within these frameworks," Yahoo said. "Once again, industry's proactive efforts on privacy have raised the bar."

Other industry players said "do not track" controls should be more than a simple button and should tell consumers about the benefits of data collection. Users should be told that choosing "do not track" button can mean "some data may still be collected," the Digital Advertising Alliance said.

Consumer groups are concerned that Web companies will dominate legislative discussions on privacy settings that are set to take place over the coming months.They worry that ad industry representatives will derail "do not track" efforts already under way at the World Wide Web consortium, which sets international standards for Web software. "We should not allow 'do not track' to be hijacked by the data collection industry," said Jeff Chester of the Center for Digital Democracy. Mr. Chester said he is particularly worried that "do not track" will prevent the delivery of behaviorally targeted ads but continue to allow companies to collect data about users.

Some legislators said they would work to make sure the "privacy bill of rights" is enforceable. "Voluntary, self-regulatory efforts aren't a substitute for laws that keep consumers information safe from prying eyes," said U.S. Rep. Ed Markey (D., Mass.).

Federal Trade Commission Chairman Jon Leibowitz said "do not track" initiatives are "still a work in progress" but that the FTC is committed to making sure the moves offer effective protections for consumers. "In America, personal privacy is a right," he said.

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.